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      03-20-2019, 07:10 PM   #61
WestRace
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Drives: E46 M3, E90 M3
Join Date: Jun 2007
Location: Los Angels, Ca.

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Quote:
Originally Posted by chassis View Post
WestRace, is there data available that you can share with the group here that highlights the point you are making about leverage? I am interested to learn more.
It's not easy obtain hard data. I think you would have to pay to obtain such data. Of the Russell 2000 companies, 38.3 percent have no net income, whereas only 1.4 percent of S&P 500 companies have no net income. These small companies are susceptible to fluctuation in rate. During the December crash, it's the Russell 2000 that led the downturn first. In recent weeks, it's the Russel 2000 that has been under-performing. Oddly, oil has been going up but so are gold. Maybe it's a hedge against central banks all lowering rates.

This morning, Powell said although the banks are in good shape, he is seeing signs of possible debt issues that could cause a systemic affect to other parts of the economy which in turn may affect the banks.

I still think that stocks are still a bit expensive. Also everybody seems a bit complacent as if the market about to just keep going up.

Can the FED continue to print and do QE forever? Will investors continue to purchase US bonds? Let's hope it won't happen.
Quote:
When the U.S. falls into a recession, a credit bubble will explode

https://www.marketwatch.com/story/wh..._theo_homepage

Last edited by WestRace; 03-20-2019 at 08:18 PM..
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